Yep, I retired. At 52. Feels great. 馃檪
I’ll give you all the details of why, how, etc. over three posts — all this week.
Thinking About Retirement
In case you all haven’t noticed, I’ve been writing a lot lately about retirement.
And not just retirement in general, but my retirement specifically.
For example, consider these posts:
- Various Forms of Retirement Income
- A Different Retirement Plan
- Four Steps to Determine Your Retirement Number
In the second one especially it started to hit me that I really did have enough to retire now. Not someday, but NOW!
Combine that with a few other factors and the time just seemed right. But I’m getting ahead of myself.
Today we’ll set the scene. To do that let’s go back in time a year or so…
Moving to Colorado
Just to be sure everyone is up to speed, in the spring of last year I was let go from my job when a new CEO came in and decided he didn’t want a president around.
It took me a couple months to find a new job which I started in the summer of 2015. My family followed in September as the whole clan moved from Oklahoma to Colorado.
The new position was rosy at first as any honeymoon phase is at a new place. But it didn’t take long for me to see that I wasn’t long for the company. And when I say it didn’t take long, I mean that I knew within the first few months that I wasn’t going to be there long-term.
How did I know this? Here are a few reasons:
- They had recruited me to turn around a perennially under-performing division. In doing this, they said they wanted a take-charge executive who didn’t need or want any direction. All I had to do was go and “make it happen.” That’s what they said. The reality was that my boss (owner and CEO/president) was a micro-manager who wanted someone to simply take orders. And not just on big, strategic things either. He wanted to micro-manage everything — down to the smallest detail. I knew it was more than I could bear for long.
- One day as I brought these issues up to him, he reacted in a hostile manner. I was not rude or insubordinate, but I did tell him that I wanted him to let me run the division. He basically told me that my team was made up of idiots and needed someone to watch them at all moments. In addition, he wondered why I would ever question him. He asked, “Don’t you want me involved?” to which I replied that I did, in various areas (which I listed), but not in other areas. He twisted this as me saying he had nothing to offer and again was hostile. But I stood my ground. We left the initial conversation on tough terms but he knew where I stood.
- He made several big impact strategic decisions against my advice. I know I was new, but there are basic business principles you just don’t break. And he broke them. Despite my advice (with supporting data) as well as that of other executives in the company supporting me, he decided against our wishes. This was just a few months into my employment and his decisions would eventually be something I would have to deal with.
- I was constantly given “urgent/drop everything” tasks that he said were vital and yet the company had been operating without them for years. Have you ever heard someone described as “majoring in the minors”? This describes him to a “T”.
Now I’ve been around the block a few times so I knew that the job would not be as great as presented in the interview process. They never are. But the reality was way worse than I thought. Years of mismanagement and poor practices had impacted every area of the division and it was a mess.
Still, I was up for this challenge if I was given the freedom and time to address it. But I was not.
In the end, there’s an old business saying that sums up my situation perfectly:
“People join companies, but they leave managers.”
The New Year
As we entered 2016, it was my first year in charge of our financials. And my goal was clear: hit our agreed upon budget numbers for net income. That was it. It was what my quarterly bonus was based on and what my boss told me I should focus on.
At the same time we launched a major (or should I say MAJOR) product that changed just about everything about our business. It had been worked on for two years and had been developed with zero consumer feedback. In other words, we launched something we didn’t know if our customers wanted or not. Yikes!
In addition, the product didn’t work correctly, had major performance issues, and had hidden costs that we should have foreseen but did not.
It was so far down the road when I arrived on the scene that there was no stopping it — or even adjusting much. That train had already left the station.
Ahead of Plan
That said, it wasn’t all gloom and doom. Our sales were poor (below budget) but because my team controlled our expenses we actually made our first quarter profit numbers and I received my bonus. Thank you very much!
In addition, my boss did step back a bit in his micro-management. Not all the way mind you, but it was better.
But the situation was about to get far worse.
To read about that, check out My Retirement Story, Part 2.
Coopersmith says
August 15, 2016 at 4:45 amUgh….. what a chapter in your life story.
ESI says
August 15, 2016 at 6:30 amUh…yeah.
It’s all worked out for the best as it does sometimes, but it’s been a roller coaster ride.
Jon @ Be Net Worthy says
August 15, 2016 at 5:09 amWow! First of all, congratulations, you must be thrilled to have finally pulled the trigger on retirement. I have to admit that I’m a little jealous and hopefully not too many years behind you!
Second, I can’t wait to hear how it all went down at the office. Being a corporate guy myself, I can relate very well to your situation above.
Sam says
August 15, 2016 at 6:09 amCongrats! Some people retire while others switch jobs in these cases. I hope to learn what you have done from your posts.
ESI says
August 15, 2016 at 6:34 amYes, I could have done that and I may well go back to work one day.
But I did/do need a break and as you’ll see in the upcoming posts there were personal reasons that made retirement the better option for now.
George says
August 15, 2016 at 6:17 amWow! Well congrats, I didn’t think you were going to pull the trigger so soon, but I’m sure you have been thinking about it for ages.
Unlike Jon I’m not a corporate person and neither is my wife, so this is all very interesting as an outside observer. Or should I say crazy. I too look forward to hearing the rest of the story.
ESI says
August 15, 2016 at 6:36 amYes, the corporate life can be pretty crazy.
You may be interested in the “My Jobs” series. Here’s the latest post:
https://esimoney.com/my-jobs-introduction-to-the-real-world/
It often does read more like a soap opera than a workplace story. 馃檪
Benny says
August 15, 2016 at 7:22 amCongratulations ESI, absolutely sensed this coming in your recent posts. Hopefully this allows you more time to spend on people and projects that make you happy.
ESI says
August 15, 2016 at 9:15 amAppreciate the thoughts.
It will certainly give me more blogging time!
Lance Cothern says
August 15, 2016 at 8:02 amCongrats ESI for pulling the trigger for retirement. I know if you’re doing it you are on solid ground, so it is well deserved. Sorry about all of the job drama. The nice thing is you had the resources to retire!
ESI says
August 15, 2016 at 9:16 amYes, it’s good to have “walk away money.”
In future posts I’ll details the financial calculations I went through, my next steps, etc.
JayCeezy says
August 15, 2016 at 8:47 amESI, you are a [email protected]$$!!!
ESI says
August 15, 2016 at 9:16 amHA!
Donna Sako says
August 15, 2016 at 9:03 amI retired at age 50. I also had suffered micromanagement issues which helped propel me into early retirement. But I had other issues, my husband became ill and died 6 months before I retired. That experience moved me even closer to retirement. It made me lose my will to continue the suffering at work. Work no longer mattered. Life did. That was 15 years ago. I have no regrets.
ESI says
August 15, 2016 at 9:18 amI’m so sorry to hear about your husband.
In the next post or two you’ll see that I had a couple issues happen in my life where I questioned even how long I would have good health. And I asked myself “if I only have __ years to live, would I want to spend any of them at work?”
It was a key question and the answer pushed me towards retirement.
Don says
August 15, 2016 at 10:15 amCongrats on your retirement, honestly, after reading your blog for the past couple years and most recently, detailing your current cashflow, I wondered why you were still working ! Hope to join the retirement ranks in the spring of 2017 at 55. Looking forward to reading about your new adventures in retirement.
ESI says
August 15, 2016 at 10:22 amI took so long because I was a glutton for punishment! 馃檪
Seriously, I always thought retirement would be at:
1. $4 million net worth
2. Generating $100k per year in income from assets
After doing the math (covered in some of the posts linked above), I found that $80k per year was enough and I was already generating that! So that’s when the light bulb went off!!!
E says
August 15, 2016 at 11:46 amCongrats!
You’re at 80% of #2, can you say if you reached 100% of #1 before retiring?
ESI says
August 15, 2016 at 12:42 pmI can not say that, no.
But retiring with your assets able to create enough income for you to live on (without spending any of the assets) is a function of:
1. Amount you have saved
2. The return rate you get to produce income
So if you have $4 million and can earn 3%, you’re going to turn out $120k per year.
If you have $3 million and can earn 4%, you get the same amount ($120k per year).
Of course you have to deal with what assets you have access to if you’re below 59 1/2 and have a good amount in retirement funds, which is an issue for me).
So in that case, you can have $1 million you have access to and if it earns 8%, you earn $80k per year.
Anyway, I’ll address much of this when I post on my retirement income, etc., though that will be down the road a bit.
Lew says
August 15, 2016 at 10:37 amCongrats! Your information is very insightful.
I’ve followed you for years including your last blog. I was able to contribute to your millionaire’s series a few years back. You should follow up with those who participated! I’d be happy to be involved.
I thought my dad “retired” at 52 but I now realize that’s just when he left his last corporate job.
I’m 53 now so I consider any additional corporate income as gravy. Even if I only last a few more years, I’ll continue to fully fund my 401k (including catchup) and pay down my mortgage (no other debt).
Once I move on from here, I hope to coast until I start drawing from my retirement savings (around 60?). Until then, just grateful to be healthy enough to work every day!
ESI says
August 15, 2016 at 11:10 amThat’s a good idea (the millionaire follow up). I’ll send you an email in the next few days to get started.
AJ says
August 15, 2016 at 10:51 amCongrats on being done (for now?). Thanks for sharing, will be interesting to see what you do next.
ESI says
August 15, 2016 at 11:10 amYes, it will be interesting.
I’m excited to find out myself!
lil says
August 15, 2016 at 11:25 amcongrats and well-deserved!! i’ve been reading your blog for at least five years (but probably more).. i started early on, around post-college and now i’m a few years out of law school. you were probably the first financial blog i followed and i have learned and applied several of your principles (index funds, roths, side-hustles) and more. i’m not as frugal as i do have a weakness for fashion and it doesn’t help that i live in sf, but the goal of early retirement is loud and clear (luckily my bf has joined the bandwagon as well).
i’m looking forward to reading about your retirement and of course, money! particularly can’t wait for the entry about how you are handling the fact that much of your assets are untouchable, as that will be an issue if i hit my goals too!
happy1 says
August 15, 2016 at 11:43 amKudos to you at retiring at age 52. I am 62 years old and still plan on working to 66 which is my full Social Security retirement age. I am a medical doctor for 36 years. My career required 12 years of education (4 years college, 4 years medical school, 4 years residency). During 8 of those years, I had no income and created debt with educational loans. I have always been a salaried employee. My income for at least 27 years has been at the median and 7 years below the median for my speciality. I have made investments in the stock market (good) and a real estate investment (bad). I have never owned a car which was more that 30K and a house over 260K. I paid for 3 children to attend college.
I am not a multimillionaire. It never has occurred to me to retire because I did not like the job. I have changed jobs several times because I did not like the corporate culture. I guess I like my profession and work. I really enjoy reading how other people were able to amass sizable savings and cash flow. I am looking forward finding out your financial calcuations.
ESI says
August 15, 2016 at 12:43 pmThanks, I appreciate that.
I like my profession as well (business) and enjoy the challenge of it, but retiring now seems right.
We’ll see what time has for me…who knows, I may go back sometime.
Young Limey says
August 15, 2016 at 12:50 pmBest post ever! Huge congratulations!!
ESI says
August 15, 2016 at 12:53 pmHa! THANKS!!!
Great to see you here!
Mr.PIE says
August 15, 2016 at 2:22 pmFirst of all congratulations! Must be a mighty fine feeling.
As somebody who will be pulling the trigger at age 51 in slightly less than 2 years, I look forward to hearing how you see the numbers lining up for your needs based upon your assets, income sources and the usual pros/cons of 4% vs 3% vs whatever% rule.
Crystal says
August 15, 2016 at 2:29 pmCongratulations!!! We’re still aiming for financial independence by age 52 too. Live the dream!!! Looking forward to your next post though…I want to see what happened!
Bruin says
August 15, 2016 at 3:37 pmCongratulations!
I appreciate the blog – and as have other well-wishers, I followed your previous one as well.
I look forward to reading more as I battle a tinge of jealousy.
Jeremy says
August 15, 2016 at 7:31 pmCongrats! Been following you and your story since your former blog. I too am looking forward to my retirement at (roughly) 52 will come in about 7 years.
Question – Did you Engineer your Layoff?
ESI says
August 15, 2016 at 7:40 pmStay tuned… 馃槈
Mike H says
August 15, 2016 at 8:35 pmCongratulations on retirement. It’s kind of a bummer that you had to end on a sour note but sometimes it works out that way. I suspect the same may happen for me to decide to hang it up.
But you are a very talented marketer and executive- I have the strong feeling that you will come out of retirement at some point just for the fun and challenge of it.
Love the quote about people leaving due to managers- that is very true.
-Mike
ESI says
August 16, 2016 at 7:31 amWell, sometimes you go out like Peyton Manning and sometimes you go out like Brett Favre. 馃檪
I already have people contacting me to discuss jobs, so we’ll see how long I can resist!
Stacey says
August 15, 2016 at 11:04 pmCongratulations ESI !!! Glad you are back to blogging to share this exciting time/decision with your readership. Keep up the great work here. Because of you, I have a Lending Club IRA. I look forward to reading your future posts
ESI says
August 16, 2016 at 7:32 amGood for you!
I’ll be doing an update on my P2P results at the start of the new year.
param says
August 15, 2016 at 11:55 pmcongrats!!! this is an amazing achievement.
one small typo noted: “summer of 2105.”
ESI says
August 16, 2016 at 7:32 amAppreciate the catch. I changed it.
Isiah says
August 16, 2016 at 11:06 amCongrats on your retirement.
Now that you have more time for the blog can you bring back millionaire interviews and some of the other popular segments. The articles themselves were great, but the comments from the community took them over the top.
Dannielle @ Odd Cents says
August 21, 2016 at 6:10 pm“Years of mismanagement and poor practices had impacted every area of the division and it was a mess.” I work in a company that is just like this and I’m trying my best to leave. Congrats on your early but well deserved retirement.
John Wedding says
August 22, 2016 at 10:33 pmHehe … yeeaaahh, I can’t see you rolling over for very long. Doesn”t seem to be in your DNA from what I’ve observed.
Someday I’m hoping to have that ace up my sleeve — to be at a point where I can leave if things go south, and not worry about picking up something else immediately.
Very glad you’re at that point.
ZJ Thorne says
October 8, 2016 at 8:39 pmIn my FT gig, they micromanage but do not supervise us. It is so frustrating that folks are planning on jumping ship without a gig lined up to replace it. Bad managers are so incredibly bad for business.
Jef says
February 13, 2017 at 2:22 pmA bit late to the party here ESI, although congrats and that’s awesome news! Maybe not so awesome on the boss and work situation although it’s often interesting how when our hands are forced good things can come of them
All the best and looking forward to reading all about it :)!
Mark says
August 12, 2018 at 9:10 amCongrats. Could you comment on what you have done regarding medical coverage before Medicare kicks in. Personally that is the only thing preventing me from feeling 100% confortable retiring early. Thx.
ESI says
August 12, 2018 at 9:13 amSee this:
https://esimoney.com/picking-right-early-retirement-health-insurance-reviewing-options/